Leonardo (LDO) Q2 2025 earnings summary

Executive summary

• Orders rose 9.7% year-over-year to €11.2 billion, revenues up 12.9% to €8.9 billion, and EBITA/EBITDA up 15% in the first half of 2025, with net debt reduced by 27.6%.

• Upgraded FY2025 guidance for new orders, FOCF, and net debt, reflecting strong operational momentum and demand.

• Strategic progress includes major joint ventures (Rheinmetall, Baykar, Edgewing), M&A in cybersecurity (Axiomatics, SSH), and the acquisition of Iveco Defence Vehicles.

• Capacity Boost Program launched to address increased demand and optimize industrial efficiency.

• UAS business sale to Fincantieri completed, with capital gain recognized.

Financial highlights

• Book-to-bill ratio at 1.3x; group backlog increased to €45 billion as of June.

• Free operating cash flow for H1 was negative €408 million, an improvement of 19% year-over-year.

• Net debt at €2.17–2.23 billion, down from €3 billion a year earlier.

• Net income for 1H 2025 reached €542 million, up 44.4% year-over-year, including capital gain from UAS business sale.

• Group liquidity at €3.62–5.8 billion as of June 30, 2025, ensuring strong financial flexibility.

Outlook and guidance

• FY2025 new orders guidance raised to €22.25–22.75 billion; FOCF to €920–980 million; net debt to €1.1–1.12 billion.

• Revenue and EBITA/EBITDA guidance confirmed at €18.6 billion and €1.66 billion, with expectations of further improvement in 2026 and beyond.

• Dividend payments increased from €0.28 to €0.52 per share.

• Guidance based on current geopolitical, supply chain, and macroeconomic assessments.